Bearish candlesticks
Candlestick chart analysis allows us to recognize current sentiment on the market. Negative emotions are shown on the chart. Bearish candlestick patterns chart price movement representing bearish attitudes. These patterns can consist of one, two or more candlesticks. I personally think that for short-term trading it’s important to know these two types of negative candlesticks patterns: - long black body candlestick
- big upper shadow candlestick
Here are examples on stock charts:This first chart presents that the price tried to go through
resistance
of a
downtrend
line and
50EMA,
but every time dived again under them. This is a really strong signal that the stock is under selling pressure. Also, notice the high number of long upper shadow candlesticks on this chart.
This chart shows how long red candlesticks developed every time the price touched a
downtrend
line.
My stock chart analysis tipIf you find a bearish candlestick pattern near an important level of
resistance,
then it is a confirming signal that current uptrend is at the end and some downtrend moves will happen soon.
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